Sat, 26 Jul 2003

House to quiz aircraft company directors over lockout

Yuli Tri Suwarni, The Jakarta Post, Bandung, West Java

The five members of the board of directors of state-owned aircraft company PT Dirgantara Indonesia (PT DI) have been summoned by the House of Representatives to clarify the controversial decision to shut down the firm and suspend its more than 9,000 employees.

The directors must appear before House Commission VII for manpower affairs next Tuesday to clarify the decision issued by PT DI president Edwin Soedarmo on July 11, legislators said on Friday.

Edwin is facing a lawsuit filed in the Bandung Administrative Court by the suspended workers, who claim their suspension is illegal because the order was only signed by Edwin and another director.

PT DI human relations manager Rakhendi Triyatna said his company had yet to receive a summons from the House, but added that if summoned the board members would appear.

"We have stated several times that the suspensions were the best measure to boost efficiency and rearrange the company so as to survive," he said.

House member Cecep Rukmana said the company's management had to address its problems transparently, including the system of paying wages which has been blamed for alleged irregularities at the firm.

He and two other legislators -- Ambia Gustaf and Afni Ahmad -- held a meeting on Friday with executives of the company's labor union to discuss matters.

The three House members backed the workers' protests and urged the directors to cancel the suspension in order to maintain stability at the plant.

"Any decision to shut down a company should be discussed with and approved by the workers," Cecep said. "In the case of PT DI, the suspension was a surprise announcement."

Edwin said the company made the decision because of severe financial problems.

However, he promised to bring back 3,000 of the workers gradually, apparently bowing to intense pressure.

Cecep said the House also would summon State Minister for State Enterprises Laksamana Sukardi to discuss his plan to privatize PT DI.